FICO UK Credit Card Market Report: January/February 2025 Summary

FICO reported that UK credit card spending followed seasonal trends, with a decline in January and a rebound in February. January saw a rise in missed payments across all categories, though February showed improvement for one- and two-month delinquencies. However, customers missing three payments continued to rise, raising concerns for lenders.

FICO also flagged an increase in first-party fraud, where cardholders intentionally bounce payments to extend credit use. FICO is working with issuers on strategies to delay clearing high-risk payments to reduce charge-offs.

Key figures:
- January average spend: £765 (down 11% from December); February: £790 (up 3.1%)
- Average card balance in February: £1,860 (up 5% year-on-year)
- Payments-to-balance ratio in February: 34.87% (down 4% MoM, 4.4% YoY)
- Three-month missed payment rates remained at 0.21% in both months
- Cash usage via credit cards continued to decline, falling to 3% of users

FICO advises that lenders adapt communication strategies and reassess affordability support, especially for new customers, as financial stress remains high.